Fuel Price Hike Looms: COPEC Warns of July Increase as Israel-Iran Tensions Rise
Accra, Ghana - 23 June, 2025 - Ghanaian consumers may be in for a rude shock as rising tensions in the Middle East threaten to drive up fuel prices in the first pricing window of July.
The Chamber of Petroleum Consumers (COPEC) has warned that the ongoing conflict between Iran and Israel, exacerbated by recent US airstrikes on Iranian nuclear sites, could disrupt global oil supply and lead to price volatility.
According to COPEC, the possibility of Iran closing the Strait of Hormuz, a critical passage for about 20% of the world's oil and gas, has raised concerns about further disruptions in supply.
Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC), in an interview with Citi Business News, raised concerns about the potential impact of global events on crude oil prices, warning that it could lead to an increase in fuel prices in Ghana.
“This week is likely to see a lot of activity on the international front as far as fuel pricing or petroleum pricing is concerned and Ghana clearly cannot be excused that possibility of paying more for fuel.''
He noted that Bulk Distribution Companies (BDCs) may take a cue from the tensions and adjust their prices upwards, which could lead to a follow-up increase by Oil Marketing Companies (OMCs).
''What I see happening locally is that the BDCs may take a cue knowing well that it is riskier landing cargo than it was a week before due to the tensions on the strait and so I will not be surprised that in the course of the week some BDCs will adjust their prices upwards and once that happens some of the OMCs will clearly have to follow because they buy directly from the BDCs.''
Duncan Amoah predicted that the relief consumers experienced in the second pricing window of June will likely be short-lived, with prices expected to rise in the first week of July.
“Anytime crude oil prices go up, the net effect on prices of finished petroleum products is usually felt between 5-7 days and I am sure this new week prices globally as far as Platt is concerned would not come funny and so whatever the oil marketing companies should decide for the first window July to do…will probably need to be justified but I do think that clearly Ghanaians should expect upward adjustment in fuel prices due to the geopolitical across the Middle East,” he added.
Source: Lead News Online
